Korean crossover and SUV maker SsangYong Motors has filed for bankruptcy of its own. According to Bloomberg, a corresponding application has already been submitted to the judicial authorities. The company decided to go bankrupt after it could not pay off its creditors: the amount of debt exceeded $ 90 million.
The company was supposed to pay off at least part of the accounts on December 14: by this time, SsangYong Motors had to close loans for $ 54 million. This did not happen, and according to various estimates, the company’s debt now ranges from 92 to 95 million. The list of the company’s creditors includes, for example, such financial organizations as JPMorgan Chase, Bank of America and BNP Paribas.
The company has filed an application for the commencement of bankruptcy and restructuring procedures. If the application is approved by the judicial authorities, SsangYong will start negotiations on reforming the debt obligations and, possibly, part of the company will change owners.
At the moment, the South Korean company is part of the Indian concern Mahindra & Mahindra: the management of the concern, due to the difficult financial situation associated with the pandemic, also refused to support SsangYong. In September, the concern announced its readiness to part with its stake in SsangYong or part of it in one way or another.
